US mortgage rates hit record low

Cheaper financing driven by decline in Treasury yields

TRD LOS ANGELES /
Aug.August 01, 2016 02:00 PM
 

From the New York site: The average interest rate on 30-year fixed-rate mortgages in the U.S. hit 3.36 percent Friday, matching the lowest level ever recorded.

The last time these mortgages came with a 3.36 percent interest rate was in December 2012. Driving the trend is a decline in the yield on 10-year U.S. Treasury bonds, which serve as a key benchmark for mortgages, Bloomberg reported.

The 10-year U.S. Treasury yield currently stands at 1.49 percent, down from 2.27 percent at the beginning of the year, as global investors seek safe investments amid economic uncertainty. Low treasury yields have also helped push up REIT stocks, as The Real Deal reported last week.

The Federal Reserve could raise short-term rates in September, but Sandler O’Neill analyst Alex Goldfarb told TRD last week that the impact on long-term treasury and mortgage rates would likely be limited.“Long-term rates are set by the market, and the Fed has only so much impact on the market,” he said. [Bloomberg]Konrad Putzier


Related Articles

arrow_forward_ios
Fed leaves interest rates under 1.75 percent following May meeting

Fed leaves interest rates under 1.75 percent following May meeting

Buying a luxury home is getting pricier thanks to mortgage rate increases

Buying a luxury home is getting pricier thanks to mortgage rate increases

US home sales remain strong, but lack of supply has slowed its roll

US home sales remain strong, but lack of supply has slowed its roll

Lenders who prey on veterans hurt other home buyers as well

Lenders who prey on veterans hurt other home buyers as well

US mortgage rate drop could cause spike in home sales

US mortgage rate drop could cause spike in home sales

New political reality could shake up nation’s mortgage market

New political reality could shake up nation’s mortgage market

Panorama Group Founder Daniel Kianmahd and a rendering of the project

Panorama Group plans 109-unit senior living project in Eagle Rock

Marc Noah, Hilton & Hyland’s most recent addition (Credit: Google Maps)

Luxury broker Marc Noah joins Hilton & Hyland from Sotheby’s

arrow_forward_ios
Loading...